After nearly doubling in value on Monday, shares of digital marketing specialist Marin Software (NASDAQ:MRIN) are surging in Tuesday morning’s pre-market activity. Trading volume of MRIN stock yesterday was more than 60 times the average daily volume.
The huge moves come less than a week after the San Francisco-based software firm announced a new integration with Instacart. Following that news, investors doubled the price of MRIN stock as trading volume surged.
While the integration collaboration is big for Marin — allowing users to manage Instacart ads, something that enables brands to connect with customers more directly at the point of sale — there’s seemingly more going on.
Short Chatter Around MRIN Stock
That “more” is likely the hoard of Reddit’s retail traders, in the absence of any material news regarding the company. In what’s becoming a familiar response, r/WallStreetBets social sentiment on MRIN stock is spiking this morning, as indicated on tracking website Memeberg Terminal.
The increased chatter comes as retail investors attempt to push back against a potential short attack on a stock with a short ratio of 0.68, according to Morningstar data. Essentially, this means that short traders need under a day to cover their position based on the average three-month volume of MRIN stock. The short volume ratio stands at 22%.
MRIN stock has spent most of the last 18 months bouncing around under $2 a share. On Oct. 21, 2020, Marin stock jumped from approximately $1.50 a share to its then-52-week high of $5.70 in a single trading session. Not only that, but this price surge was accompanied by heavy trading volume.
Over the next few trading days, MRIN stock crashed back to $2.21, shot up to $4.47, and eased back to $2.47. So, our warning from last week still stands: Be aware that this stock is only for folks who can handle a fair amount of volatility.
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On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, including previous stints with Bloomberg News and as a buyside equity research editor. His Substack newsletter, TLV Strategist, covers the Israel business scene.